GC IM presentation vs final 01

Role of the Actuarial Function The Actuarial Function  The Solvency Actuary  The Competencies of the Solvency Actuary  The Position of the Solvency Actuary  The Report of the Solven

Trang 1

Role of the Actuarial Function

Groupe Consultatif Actuariel Européen

Trang 2

“Insurers should

be required to

have actuarial

expertise”

Trang 3

Role of the Actuarial Function

 The Actuarial Function

 The Solvency Actuary

 The Competencies of the Solvency Actuary

 The Position of the Solvency Actuary

 The Report of the Solvency Actuary

Trang 4

Trang 5

Skills and Competencies

 Financial and prudential analysis and advice on the management of risks, liabilities and assets

 Mathematical and financial skills and training in

statistics and risk analysis, used to analyse past

events, assess present risks, and model what could happen in the future

 Platform of defined skill set and competencies

Trang 6

Range of actuarial roles

Pricing Premium

Reserving Claims

Risk measurement Solvency

Reinsurance

Market factors

Trang 7

Task and responsibilities include

 Pricing

– Tariffs for insurance companies

– Design of policies and systems

 Reserving Reserving

– Technical provisions and liabilities of insurance companies

– Equalisation provision for social security system

Trang 8

Introducing the Solvency Actuary

 Solvency Actuary

– Provides “hands on” analysis and advice

– May direct internal actuarial resources

– Advises the ‘senior governing body’ on

Trang 9

Trang 10

The Solvency Actuary I

insurance company on an annual basis This covers the whole financial position (not only technical provisions and related

items) as shown in the balance sheet

– Not just an historical investigation but also a forward looking

exercise examining the expected future development of the

financial position

governing body’ of the insurer

financial position during the course of the year

Trang 11

The Solvency Actuary II

 Primary client is Board or ‘Senior Governing Body’

 Secondary client may be Supervisor

 There should be a three way relationship between the Solvency

Actuary, the Board and the Supervisor; the Supervisor’s relationship with the other two parties may be determined by legislation or there may be a three party contract between the insurer, the Supervisor and the Solvency Actuary

 Solvency Actuary maintains a good relationship and (in)formal contacts with external Auditor; the external Auditor may be relying on the

Solvency Actuary’s report

 Possible ‘whistle blower’ responsibility to Supervisor

 Public Role / Disclosure requirements

Trang 12

Trang 13

Possible ‘whistle blower’ responsibility

 Possible whistleblowing role - if set down in

regulation or contract with Supervisor

 In any circumstances in which the current or future solvency of the insurer is in danger

that the Board does not act to mitigate the relevant

circumstances, he will have to notify the Supervisor

the Supervisor, at the same time advising the Board that he

is doing so

Trang 14

Public Role

 Is there a further role for the Solvency Actuary in

relation to the public interest?

 For example, should the Solvency Actuary be

required to produce a report for policyholders?

 Would this be provided for in legislation?

Trang 15

 Solvency Actuary, in addition

Trang 16

 Objective view

 Free of any material conflict of interest i.e

 Unhindered by other material (commercial) concerns

of the insurance company

 To seek conformity with accounting standards

Trang 17

Trang 18

Actuarial Position I

– a Solvency Actuary, and

– a Reviewing Actuary

– Solvency Actuary be an internal appointment

– Reviewing Actuary role be an external appointment.

could give rise to concerns as to the independence of the

Reviewing Actuary.

However, not by the same person and the two external

actuaries should not be connected

Please note current country specific preferences

Trang 19

Senior Governing Body

Management

Solvency Actuary

Actuarial Position

External Auditor

Chief Financial Officer

MODEL A

Trang 20

Management

Solvency Actuary

Actuarial Position

External Auditor

Reviewing

Actuary

MODEL B

Trang 21

Management

Actuarial Position

External Auditor

Reviewing

Actuary Chief

Financial Officer Solvency

Actuary

MODEL C

Trang 22

Solvency Actuary

Actuarial Position

External Auditor

Reviewing Actuary

Senior Governing BodyMODEL D

Trang 23

Trang 24

‘Statutory’ Financial Reporting I

principles

reporting date

– Risk margins on the provisions

– Discounting

adverse deviations

– check on methodology, check on calculations, retrospective,

backward looking statements, IFRS Liability Adequacy Test, ad hoc coverage of risk development, annually

Trang 25

‘Statutory’ Financial Reporting II

 To discuss with external Auditor before finalisation

 To separately report in writing to

 To separately report in writing to Supervisor

(when required)

Trang 26

‘Solvency’ Financial Reporting I

 Financial and Solvency Position of the company

 Compliance with local (additional) solvency

requirements

 Independent report by the Solvency Actuary

 Based on generally accepted actuarial principles

 Stating Personal opinion

Trang 27

‘Solvency’ Financial Reporting II

 Status quo and expected future development (1)

Trang 28

‘Solvency’ Financial Reporting III

 Status quo and expected future development (2)

• Correlations

• Effect of diversification

• Suggested improvements

• Analysis of recent development

• Projections

• Minimum Capital Requirement

• Solvency Capital Requirement

• Use of Standard formula vs internal model

Trang 29

‘Solvency’ Financial Reporting IV

Trang 30

‘Solvency’ Financial Reporting V

Supervisor, external Auditor etc.

compulsory basis)

basis)

parts of the Report) or may require a separate report from the

Trang 31

Board of Directors

‘Solvency’ Financial Reporting VI

External Auditor

Supervisor

Report of the

Solvency

Actuary

Trang 32

Position Groupe Consultatif

Groupe Consultatif is ready, willing, prepared and

organised to develop proposals in close cooperation with Directorate Internal Market for a framework for

 The Competencies of an Actuary

 The Position of the Actuary

 The Report of the Actuary

Định dạng
Số trang	32
Dung lượng	218 KB